Overview

The Securities and Exchange Commission is soliciting comment on the policy implications of, and the regulatory issues raised by, a transfer agent operated book-entry registration system (hereinafter referred to as the "direct registration system" or "DRS"). Investors who choose to participate in a direct registration system could have their securities registered in book-entry form directly on the books of the issuer and could receive a statement of ownership in lieu of a securities certificate. The direct registration system would extend book- entry registration to corporate equity and debt securityholders; book-entry registration is currently offered to dividend reinvestment plans and shares of registered investment companies. This system is being considered by issuers and transfer agents in preparation for faster trade settlements which will be required on June 7, 1995.